Continues Active Discussions With Remaining Unions
UAL
Corp. the parent company of United Airlines, has
announced that it has reached a tentative, six-year
agreement with the Air Line Pilots Association (ALPA) that
creates a new framework of labor costs and productivity. The
agreement has been endorsed by ALPA's Master Executive Council
(MEC) and is subject to approval by the UAL board of directors. In
addition, the tentative agreement requires ratification by United's
pilots.
"Our pilots are to be highly commended for their
leadership role in tackling the fundamental issues we face at a
critical time for United Airlines and the industry," said Glenn
Tilton (right), chairman, president and chief executive officer.
"This breakthrough agreement is a significant step forward in
making the hard changes necessary to reposition United to compete
more effectively both immediately and over the long-term. This
agreement helps provide the flexibility United needs to strengthen
our business, compete where we choose, and become a resilient,
profitable company that can offer stable jobs on a sustainable
basis.
"We recognize the sacrifices this agreement represents and
admire the pilots for taking these difficult actions. This is a
huge step in enabling this airline to emerge from Chapter 11 as a
stronger, more competitive company. We've consistently said that
this was the chance to get it right for the long-term, so I
especially appreciate Captain Paul Whiteford and the ALPA MEC for
engaging in the tough but necessary work that allowed us to arrive
at this agreement together," Tilton said.
Leaders from the pilots union will present the agreement to
their membership and establish a schedule for ratification. The
tentative agreement between ALPA and United addresses the company's
short- and long-term cash needs and supports the company's plan for
transformation.
In total, the tentative agreement provides annual labor
costs savings of approximately $1.1 billion, in line with
the company's financial requirements.
"We
are committed to continuing to work collaboratively with our
remaining unions on similar agreements and will continue to
negotiate with them around the clock, if necessary, in the days and
weeks ahead," Tilton said.
United earlier this month reached a tentative agreement with the
Transport Workers Union on behalf of the 18 meteorologists working
at United's world headquarters that has since been ratified. The
agreement with the TWU calls for a permanent reduction in wages of
13 percent and changes to certain work rules.